2025 Annual Report by Alberta Municipalities

2025 ANNUAL REPORT

Table of Contents

ABOUT US President’s Message.................................................................................... 4 CEO’s Message............................................................................................. 5 Our Board...................................................................................................... 6 Member Engagement................................................................................... 8 ADVOCACY SERVICES – 2025 HIGHLIGHTS........................................... 11 Property Taxes Reimagined........................................................................ 12 Advocating for investments in prevention................................................. 13 Policing........................................................................................................ 14 2025 Municipal Election ........................................................................... 15 Housing........................................................................................................ 16 Water............................................................................................................ 17 Other notable initiatives............................................................................. 18 Elected Officials Education Program (EOEP)............................................. 19 PRODUCTS & SERVICES – 2025 HIGHLIGHTS....................................... 20 Experts in Listening to Communities......................................................... 22 Energy Program: Helping shape Alberta’s energy market........................ 23 Insurance & Risk: Power of our program................................................... 24 Employee Benefits: Industry trends/Program Stability and Growth ....... 26 Retirement Services: Overview & APEX update........................................ 27 Clean Energy Improvement Program (CEIP).............................................. 28 Elected Officials Education Program (EOEP)............................................. 29 OUR BOARDS & COMMITTEES................................................................. 30 Governing with Excellence.......................................................................... 32 Commitment & Governance Meetings...................................................... 34 2025/2026 Alberta Municipalities Board of Directors............................ 36 Board Compensation and Expenses.......................................................... 38 FINANCIAL REPORTS................................................................................. 40 Association Of Alberta Municipalities........................................................ 42 Alberta Municipal Insurance Exchange..................................................... 48 APEX Supplementary Pension Plan........................................................... 52

President’s Message The past year highlighted just how much responsibility municipalities have and how much they deliver to their residents. Across Alberta, local governments continued managing population growth, rising costs, increased demand and residents’ expectations, while staying focused on what matters most: serving their communities. In 2025, Alberta Municipalities ensured that our members’ voices were heard – clearly and consistently – by provincial and federal decision makers. Whether we were advocating on infrastructure, public safety, health care pressures, or municipal governance, our message was the same: municipalities need stable, predictable, and sufficient funding to deliver the infrastructure, programs and services that Albertans rely on every day. Our financial advocacy achieved several “wins” in 2025. In February, we welcomed increased Grants in Place of Taxes (GIPOT) and $90 million more in capital funding under the Local Government Fiscal Framework (LGFF) Capital program. In October, we launched our “Property Taxes Reimagined” (PTR) public information project to help Albertans understand the reasons behind property tax increases and begin conversations about how municipal services should be funded. Advocacy isn’t about quick wins. It’s about repeatedly showing up, making the case, tracking changes, building momentum, and moving closer to achieving our desired outcomes. This year, we continued building on that long-term effort by pressing for better outcomes, pushing back when responsibilities were downloaded without support, and standing firm on the principle that strong communities start with strong local governments. Our members help make this work effective. From summer villages and rural towns to Alberta’s largest cities, municipalities brought forward practical solutions and real-world insights. When members speak with one voice, what they say carries weight and is heard. That collective strength is one of Alberta Municipalities’ greatest assets, and it’s what allows us to advocate on behalf of communities of every size and region. Sometimes the strength of this advocacy is reflected in what does not happen. For example, last summer the province considered requiring municipalities to adopt mandatory service levels for fire. Municipalities of all sizes expressed concern about feasibility and ABmunis met with provincial officials to highlight the challenges of imposing such requirements. As a result, the province stepped back down from pursuing a mandatory approach and is now working with municipal associations and other stakeholders on a more wholistic approach to fire prevention and response. At the same time, both the province and federal government examined reducing or restricting the off-site levies (OSL) to spur development. In 2025, ABmunis advocated that, for many communities, off-site levies are an essential tool for funding the infrastructure required to support growth, and we will continue this work into 2026. On behalf of the Board of Directors, I thank you, our members, for your leadership, your engagement, and your continued trust in Alberta Municipalities. The work isn’t finished, but it’s stronger because we’re doing it together.

– Dylan Bressey PRESIDENT

CEO’s Message 2025 was a year that required considerable focus and follow-through. Municipalities continued to navigate complex pressures, from financial constraints and legislative change to growth and service delivery expectations. Throughout the year, Alberta Municipalities remained focused on providing practical, reliable support that helps members make informed decisions and deliver for their communities. Our work spans advocacy, policy development, education, and business services, and each of those areas plays a role in strengthening municipal capacity. In 2025, we continued engaging with governments, expanding member resources, and refining our programs to ensure they remain relevant, responsive, and aligned with member needs. We continually made our members’ positions known to the provincial government through frequent meetings and correspondence with cabinet ministers and their ministries. Health care, housing, policing and public safety were just some of the issues we tackled on our members’ behalf. We made headway on many fronts, including rules for the recall of municipal elected officials, updates to the Water Act, and changes to ownership of school sites. This year, we continued strengthening the systems, partnerships, and internal processes that support our work. From training and events to communications and service delivery, our goal has been consistency and clarity. Member feedback remains central to that effort. Insights from municipalities help shape our advocacy positions, inform our services, and guide our association’s priorities. That ongoing dialogue ensures Alberta Municipalities remains grounded in the realities our members face and focused on delivering real value. Our work in 2025 reflects the collective effort of many people. I want to recognize the dedication of our staff, whose expertise and commitment underpin everything we do, and the leadership of our Board of Directors, who provide strategic direction and oversight. Most importantly, I want to thank our members for their engagement and trust. This annual report highlights progress made throughout the year and reflects our persistence. Many of the challenges municipalities face won’t be solved overnight. They require partnership, long term thinking, and a willingness to keep the conversation going. Alberta Municipalities remains committed to supporting local governments with thoughtful advocacy, practical solutions, and a steady focus on what helps communities thrive and succeed.

– Dana Mackie CEO

Our Board

VISION We are a change agent that enables municipalities to be a fully engaged order of government with the capacity to build thriving communities.

MISSION We are the voice of Alberta’s urban municipalities and we provide visionary leadership, solutions-based advocacy, and service excellence.

CORE VALUES EXCELLENCE Provide municipal expertise through timely, consistent and accurate services, continuous improvement and innovation. MEMBER FOCUS Offer resources and solutions tailored to meet the needs of our members. ACCOUNTABILITY Act with integrity and transparency. COLLABORATION Establish networks and partnerships through which we engage and respond. COMMUNICATION Inform, educate and listen to members and other stakeholders.

2025 - 2026 ALBERTA MUNICIPALITIES BOARD OF DIRECTORS Back row: Councillor Jenny Jones - Town of High River, Councillor Keren Tang - City of Edmonton, Deputy Mayor Deborah Reid-Mickler - Village of Duchess, Mayor Brian Waterhouse - Summer Village of Sundance Beach, Mayor Bill Rock - Village of Amisk, Councillor Janelle Sandboe - City of Chestermere, Councillor Erin Stevenson - City of Spruce Grove Front row: Mayor Tara Elwood - Village of Alberta Beach, Councillor Andre Chabot - City of Calgary, Councillor Dylan Bressey - City of Grande Prairie, Councillor Thu Parmar - City of Edmonton, Councillor Jenn Schmidt-Rempel - City of Lethbridge Not pictured: Councillor Landon Johnston - City of Calgary, Towns East - Councillor David Sharun - Town of Bonnyville

Member Engagement We are driven to bring together members for moments of connection, shared ideas, and meaningful conversations. We believe we are stronger when we come together.

More than

1300

delegates

attended our annual Convention & Trade Show our largest Convention ever.

134

exhibitors

430

embers m attended

took part in our 2025 Convention & Trade Show.

our President’s Summit & Spring Municipal Leaders’ Caucus in March.

We visited four member municipalities across the province during our

Summer Municipal Leaders’ Caucuses, visiting Peace River, Devon, Drumheller, and Picture Butte.

Amplifying our voice Throughout 2025, we worked with reporters from across the province to make our positions known to Albertans on a wide variety of topics. Our efforts to encourage community leaders to run for council through the “Running for Municipal Office” campaign were widely covered by Alberta-based media in the months leading up to the 2025 municipal elections. The introduction of our “Property Taxes Reimagined” (PTR) information project in October also received considerable media attention. We also worked closely with participating municipalities on Clean Energy Improvement Program (CEIP)-related communications, resulting in quick public uptake. In addition to receiving fulsome coverage from media outlets located in Calgary, Edmonton and Red Deer, our advocacy efforts received more coverage than ever before from media organizations based in mid-sized cities and towns. Our messages increasingly reached Albertans in municipalities of all sizes and locations throughout the province in 2025.

ADVOCACY SERVICES 2025 Highlights

Property Taxes Reimagined ABmunis launched our Property Taxes Reimagined initiative in October 2025 to bring attention to the facts for why property taxes are rising and to create a conversation among all Albertans about whether there needs to be a change for how local municipal services are funded in the future. The initial phase of the project featured the release of: our videos explaining the impact of provincial F decisions and inflation. Six short papers that present the facts on:  The cumulative factors driving up property taxes,  Decisions by every provincial government over the last 15 years that have lowered funding or added costs for municipalities,  How municipal governments are required to set their tax rates to balance their budget,  The significant impact of inflation on municipal government costs, and  The difference between municipal property tax and provincial property tax. The soft launch of this initiative in late 2025 focused on testing the materials with our members and the public through social media. The initial response was overwhelmingly positive and positioned ABmunis and our members to influence future public dialogue on Alberta’s fiscal framework and how to ensure both the Government of Alberta and municipalities have adequate revenue tools to pay for the public services that Albertans need and expect.

In 2026, we will be expanding on this project through additional research and engagement with members to develop possible solutions to curtail the pressure on property taxes. 12

Advocating for investments in prevention

Family and Community Support Services (FCSS) deliver prevention programs that support residents and reduce long‑term pressure on health, emergency, and social services. However, provincial FCSS funding has not kept pace with rising costs, population growth, and increasingly complex community needs, leaving municipalities to shoulder more of the costs or make difficult service reductions. In 2025, ABmunis made strengthening FCSS funding a strategic priority to support members and protect these essential programs. ABmunis teamed up with Rural Municipalities of Alberta (RMA) and Family and Community Support Services of Alberta Association (FCSSAA) to engage with the provincial government. This included a joint meeting with Minister Nixon, followed by an invitation from the Minister to work with his department officials on the need for a funding increase and explore potential additional and complimentary funding. We coordinated the joint advocacy efforts but also spearheaded a series of independent meetings with department staff including Assistant Deputy Ministers and the Executive Director and Director directly responsible for FCSS. FCSS was front and centre at our Annual Convention with a focused breakout session, and as point of discussion with the Premier and Minister Nixon during dialogue sessions.

Policing

Municipalities of all sizes across Alberta are struggling with how to improve community safety and manage the increasing cost of policing.

2025 brought major changes to both police funding and police governance. Public Safety and Emergency Services contracted consulting firm MNP to review the police funding model last year. Engagement took place in May and June 2025 and ABmunis emailed members materials in May to support their participation in engagement. Our Board members also met with MNP on July 2, 2025 to share ABmunis positions. The Government of Alberta released the new police funding model in December and ABmunis responded by noting how rising policing expenses is creating additional strain on municipal finances at a time when population growth, inflation, reduced provincial funding, and restrictions on local revenue tools are already forcing municipalities to increase property taxes to maintain core services and infrastructure. Analyzing the impacts of the new funding model will remain a key priority in 2026. Amendments to the Police Act in 2022 were also implemented in 2025 to mandate the establishment of civilian governance bodies for all communities policed by the RCMP. We partnered with the Alberta Association of Police Governance (AAPG) to support members in creating these new governance bodies and promote AAPG bylaw templates and related resources. We also appointed two ABmunis Board members to the Provincial Police Advisory Board, which represents the communities served by the RCMP under the Provincial Police Service Agreement (PPSA) and will make recommendations on province-wide policing priorities. It is anticipated that this Board will begin to operate in 2026.

2025 Municipal Election To support municipalities with their local elections, ABmunis partnered with Rural Municipalities of Alberta (RMA) to host 16 webinars over 6 months to help educate and engage prospective local candidates. Each webinar was tailored to a specific municipality type, focusing on the roles and responsibilities of an elected official, how municipal governments work, and some campaigning basics. This initiative reached over 476 individuals throughout the webinar series and even inspired a local Edmontonian to run in their summer village election! To help elected officials settle into their roles and utilize social media to its fullest potential, we also partnered with Parodos Social Marketing to develop a social media toolkit. This support helped elected officials create safe spaces to run their campaigns and connect with their communities. This toolkit was a direct result of member feedback from a session at our President’s Summit in 2025.

Housing

Housing access and affordability is a priority for municipalities across Canada and municipalities in Alberta are leading the way in housing starts. The Enabling Growth and Housing Affordability (EGHA) engagement series, held from February to August 2025, brought together municipalities, industry stakeholders, and provincial representatives to explore opportunities to further streamline development processes and support housing growth across Alberta. Discussions focused on permitting timelines, “automatic yes” approvals, non-statutory development studies, Off-Site Levies (OSLs), land dedication, and appeals processes. Throughout the engagement, ABmunis prepared several submissions emphasizing the importance of maintaining municipal flexibility, improving clarity around development requirements, and prioritizing public consultation during major policy changes. Draft submissions were shared with members in advance of submission to the Government of Alberta, and member feedback was incorporated throughout the seven-month process. A major focus of the engagement was Off-Site Levies (OSLs), which remains a priority issue. Municipalities consistently highlighted the need to balance greater efficiency and predictability with public safety, local context, and municipal autonomy. OSLs are a growth pays for growth model, which has worked well for Albertans by allowing for sustainable growth in communities. In 2026, we will continue exploring ways to support municipalities and highlight the value and importance of OSLs.

Water

The availability of water and the cost of treating water and wastewater are major concerns for municipalities as they deal with aging infrastructure and increasingly unpredictable weather patterns. In 2025, ABmunis advanced a comprehensive water advocacy agenda focused on strengthening municipal capacity, shaping provincial policy, and supporting long‑term water sustainability. Key initiatives included the release of the Water Conservation and Efficiency Plan (CEP), active participation in Alberta’s water availability engagements, and multiple ad hoc meetings with the Sustainability and Environment Committee to assess municipal impacts and inform advocacy related to the proposed Water Amendment Act. Our team also delivered a dedicated water‑focused session at the 2025 Summer Municipal Leaders’ Caucus, aligned with provincial engagement efforts, which provided members with an overview of proposed legislative changes, outlined advocacy positions, and highlighted key issues such as data gaps, inter‑basin transfers, licensing challenges, and water infrastructure pressures. To support municipalities at an operational level, we developed and released the Municipal Water Conservation: Getting Started and Advancing Practices guide, offering practical, scalable tools to advance local conservation efforts. In addition, we contributed municipal expertise to the Alberta Water Council’s Source Water Protection team, supporting collaborative policy development and the release of a new tool to strengthen watershed‑level planning and protect drinking water sources across the province.

Other notable initiatives

ABmunis also invested considerable time and effort into other advocacy issues during 2025. A few examples of this work include:

Participated in over twenty engagements with the Government of Alberta. Advocated for improvements and informed members of Bill 50, Municipal Affairs Statutes Amendment Act, 2025, regarding the elimination of council codes of conduct and changes to intermunicipal collaboration frameworks, reporting by the CAO, and other issues. Submitted 16 recommendations to improve the rules for recall of a municipal elected official. Raised concerns that should be addressed under the Government of Alberta’s changes to ownership of school sites. Successfully advocated against the proposed requirement for every municipality to establish a level of fire service due to sustainability of volunteer firefighters and related liability. Launched engagement with members following the 2025 municipal election to gather feedback and data to inform future reviews of the Local Authorities Election Act. Secured an additional onboarding date for Extended Producer Responsibility (EPR) Phase 1, easing implementation pressures for municipalities and hosted webinars to help members understand EPR requirements and prepare for implementation.

NE W

Released new resources for members including:  Social Media Toolkit  Working Well Together: A Toolkit for Council-CAO Relationships – developed in partnership with the Rural Municipalities of Alberta  Privacy Guides for both elected officials and administration to help navigate changes to Alberta’s privacy legislation – developed in partnership with Reynolds Mirth Richards and Farmer LLP.

Elected Officials Education Program (EOEP)

With 2025 being an election year and new mandatory training requirements for elected officials, EOEP restructured its popular Munis 101 course to be offered in just one day to help councils meet their orientation requirements immediately after the election. In response to input from councils, EOEP also launched a new course in 2025 called, Council’s Role in Employment of the Chief Administrative Officer and updated the Budgeting & Finance course. In 2025, EOEP hosted 20 courses through a mix of online and in-person formats.

1100+

100+

93%

trained in the year

participated in courses

over those 20 courses

elected officials

municipalities

satisfaction rating

Hosted

9 offerings

in six different communities

after the election

in-person courses

of the Munis 101 course

EOEP is a non-profit entity jointly operated by Alberta Municipalities and the Rural Municipalities of Alberta.

PRODUCTS & SERVICES 2025 Highlights

Experts in listening to communities

At Alberta Municipalities, we know community leaders have a lot to manage. Our regional customer service approach makes it easier to stay in touch with our team. Our Regional Managers work with specific areas of the province. This helps them get to know their communities and to build meaningful relationships. They are a trusted source of information and can suggest the right services and recommendations, at the right time to help communities succeed.

Our business services team has engaged in

More than

meaningful interactions

275 & 800

with our customers, both in person and virtually.

participate in our Products & Services.

600+

municipalities not-for-profit organizations

Our casual legal service, available to members, received

215 calls

and provided 43 hours of advice in 2025. T opics discussed included council meetings and governance, bylaws, procedures, contracts and employment matters.

Visit us online to learn more about our regional representatives. 22

Energy Program: Helping shape Alberta’s energy market Established in 2001, our Energy Retail Program serves as your in-house energy team. Our team of dedicated energy professionals act as your advisor, procurement agent, consultant, and retailer. We do more than supply electricity, natural gas and renewable energy certificates. We give clear and customized advice on optimizing distribution and transmission rates, and budgets. We procure wholesale energy and aggregations on your behalf, and act as an energy consultant when advice is needed on your facility operations. As Alberta reshapes its electricity landscape through the Restructured Energy Market (REM), we are at the table working with the Alberta Electric System Operator (AESO), Ministry of Affordability and Utilities (MAU) and various other industry stakeholders. We are there to ensure that the electricity interests of our members are met today, and into the future.

In 2025:

Nearly

Over

sites were served

service activities

30,000 ranging from multi-storey offices and water treatment plants to historical houses and traffic lights.

4000

were completed for our energy retail program participants

DID YOU KNOW? Participating members receive energy procurement and analytic services, at no additional cost. This means they save money by eliminating the need for additional consultants. 23

Insurance & Risk: Power of our program

Our Insurance & Risk Services team is proud to deliver stable, comprehensive insurance and risk management support. Our commitment allows members to plan and know what to expect. Because of our member-focus and strong management of MUNIX, our insurance reciprocal, we continue to provide stable premiums for participating members. MUNIX helps balance the highs and lows of changing insurance markets and we remain focused on providing premium stability. For 2026, MUNIX provided the benefit of surplus equity by offsetting premiums by $2 million to help relieve budget pressures for members and support the wellbeing of Alberta communities. We offer a wide range of risk management supports for members. We focus on delivering helpful, value-added support through our Regional Managers and Insurance and Risk Advisors. In addition to our regular member engagements, we offer guides and tip sheets available to help members manage risk in their communities. Topics include Sidewalk, Curb, & Gutter Maintenance Policy, Managing Sewer Backup Claims, Preventing Burst Pipes and Water Damage, Developing a Water Escape Plan, and Community Signage Guide. These guides can help members create policies and procedures to reduce their risk and avoid future claims. Connect with riskservices@abmunis.ca to learn more.

EVENTS Our Risk Aware Webinar Series addresses risks that are faced within Alberta’s communities. These regularly hosted webinars are open to members to participate in, and recordings are shared post-event. View our past and upcoming webinars here.

Risk Management eLearning

In-House Legal

In 2025:

Our in-house legal counsel plays a critical role in supporting members participating in our Insurance & Risk Services program.

702 courses were completed by our members

15 Top 3

complementary eLearning modules

eLearning modules:

 WHIMIS  Workplace Violence Prevention for Municipalities  Essentials of Municipal Risk Management In 2025, the WHIMIS and Workplace Violence Prevention for Municipalities modules were both updated with new course material on an updated platform which is more user-friendly and follows updated accessibility guidelines. Participating members are encouraged to sign up and explore course options at abmunis.skillbuilder.co.

Working closely with our claims, risk, and insurance teams, our legal counsel provides guidance on claims, reviews defences under the Municipal Government Act and other applicable legislation and delivers clear coverage opinions and policy interpretations. This integrated approach ensures claims are managed efficiently, members’ interests are well protected, and complex legal matters are addressed with consistency, clarity, and care.

Building Valuation & Loss Control Program Over the last year, our service completed:

697 building valuations

826

loss control recommendations 25

Employee Benefits: Program stability and Growth We serve those who serve communities by providing life, health, accident, dental, and disability insurance. We are proud to provide confidence for municipal and not-for-profit human resources teams who need accurate and informative advice. Our team works with municipalities and not-for-profits to provide benefit plans that fit their total compensation strategies. We work together to take a collaborative approach to achieve long-term, stable pricing by sharing usage rates and market trends. When setting yearly premiums, we look at many factors, including multi-year claims experience, employee demographics, health care developments, and industry trends, conditions and legislation. This helps us find the right balance for members. Our approach has helped us grow. In 2025, our Employee Benefits offering expanded to support 16 additional organizations across Alberta. This means that over 40,000 lives are supported by our program, including employees and their families. Because of our scale, we are able to deliver a stable program that provides strong value for money.

Overview of Extended Health Care and Dental plans

Each year, we review member benefits plans and share updates on rising trend factors. This includes the cost of medications for ongoing and serious conditions, increased use of specialty drugs, and more cases of chronic illness. We also review coverage for fertility drugs, sexual health, and anti-obesity support.

Mental Health Supports

Mental health needs are growing and becoming more complex. This affects wait times, access to care, medication use, psychological supports, sick leave, and disability program costs. The incidence, duration, and complexity of disability claims are increasing, along with associated costs. Mental health claims, in particular, are having a significant impact, as the ongoing surge continues to influence disability claims across the benefits industry. Ongoing challenges in accessing specialized medical care for complex diagnoses and treatment can further affect claim durations, return-to-work programs, and overall costs. Understanding the importance of these supports, our plans include wide range of mental health services. These include psychology services, specialized support for critical incidents, guidance to help individuals navigate the complexities of mental health, and training for managers to better support employees.

Our team works closely with participating members to help them understand how their plan is impacted and how to manage it to best serve their organizational needs. 26

Designed to complement the Local Authorities Pension Plan (LAPP), the APEX supplementary pension plan is our defined benefit plan that is a powerful attraction and retention tool for employees.

Retirement Services: Overview & APEX update

182

2,865

$207M Assets

 APEX  MuniSERP  ACPP G roup RRSP/TFSA

Participating

Participants across our Plans

Over the past year, the APEX Plan achieved several important milestones that reinforce its long term strength and value to our members. The Plan completed its Actuarial Valuation, which confirmed that APEX is in a strong financial position and has adequate funding mechanisms to support promised benefits. The Plan also moved from flat contribution rates to a split contribution structure, mirroring the approach used by the Local Authorities Pension Plan (LAPP). This change does not affect member benefits. However, it makes contributions more equitable by better matching what members contribute with the benefits they earn.

Under Management

Clean Energy Improvement Program (CEIP)

Municipalities rely on partners they can count on. With years of proven delivery, deep municipal partnerships, and managing a growing demand, we set the standard for how CEIP is administered across the province. From passing a clean energy improvement bylaw to verifying eligible upgrades, our dedicated team is with you for every step providing years of practical experience and community-focused support.

The Clean Energy Improvement Program is Alberta’s innovative financing tool that offers a new way to pay for energy efficiency and renewable energy upgrades. This program enables residential and commercial property owners in participating municipalities to access flexible, long-term financing and pay it off through their property tax bill.

2025 Programs Launched:  City of Airdrie - February 4, 2025  Town of Banff - March 18, 2025  City of Spruce Grove - May 13, 2025  City of Wetaskiwin - October 1, 2025  Municipality of Jasper - November 25, 2025

New Additional Financing:

Total Completed Projects in 2025:

Number of Albertans covered by a CEIP bylaw:

Total Financing for completed projects:

Qualified Contractors:

Average Financing per Project:

$12.4M 3M

621 28

492

$13.3M $27,100

Municipal Climate Change Action Centre (MCCAC) In 2025, the Municipal Climate Change Action Centre completed 56 projects and catalyzed $4.19 million in investments. Annually, these projects will reduce emissions by an estimated 1700 tonnes of CO2 equivalent and save municipalities an estimated $496,000 in combined energy savings costs. This activity created 46 energy efficiency and renewable energy jobs.

Notable Project Completions Included: Served

unique municipalities

Invested

$1.3M

in energy efficiency retrofits

communities

participating in our climate resiliency training

This year the Municipal Climate Change Action Centre administered programs funded by the Government of Alberta, Natural Resources Canada, and the Federation of Canadian Municipalities.

OUR BOARDS & Committees

Governing with Excellence A HIGH-PERFORMANCE BOARD IS ACCOUNTABLE AND INDEPENDENT. Guideline 1. Ensure the board is accountable, transparent, fair, and responsible. Guideline 2. Ensure directors are independent of management.

Alberta Municipalities is committed to the highest standards of corporate governance and refers to the Canadian Coalition for Good Governance (CCGG) Building High Performance Boards principles in fulfilling our responsibilities as fiduciaries in meeting our obligations with our members. Your Association strives to ensure its Boards and Committees adhere to the following CCGG guidelines.

Guideline 3. Separate the roles of Board Chair and Chief Executive Officer. A HIGH-PERFORMANCE BOARD HAS EXPERIENCED, KNOWLEDGEABLE AND EFFECTIVE DIRECTORS WITH THE HIGHEST LEVEL OF INTEGRITY. Guideline 4. Ensure that directors are highly competent and bring the required knowledge and experience to the board. Guideline 5. Ensure that the goal of every director is to make integrity the hallmark of the organization. Guideline 6. Establish reasonable compensation for directors. Guideline 7. Evaluate board and committee performance. A HIGH-PERFORMANCE BOARD HAS CLEAR ROLES AND RESPONSIBILITIES. Guideline 8. Establish terms of reference for board committees and ensure committee independence. Guideline 9. Adopt well defined board policies and processes that support board independence. Guideline 10. Oversee strategy. Guideline 11. Oversee risk management. Guideline 12. Assess the Chief Executive Officer and plan for succession. Guideline 13. Develop and oversee executive and employee compensation policies. A HIGH-PERFORMANCE BOARD ENGAGES WITH MEMBERS AND COMMUNITIES. Guideline 14. Advocate for the needs of all our members, from the smallest village to the largest city. Guideline 15. Support communities by identifying and providing services that help them build resilient and thriving communities.

Corporate Organization Structure Index:

ABmunis

Subsidiary Plan Sponsor

AEOEPC

Association of Alberta Municipalities

Alberta Elected Officials Education Program Corporation

AMSC

MUNIX

Alberta Municipal Services Corporation

Alberta Municipal Insurance Exchange

AMSCIS

APEX

AMSC InsuranceServices LTD

APEX Supplementary Pension Trust

Board & Committee Structure ABmunis Association of Alberta Municipalities

Sustainability and Environment Committee

Safe and Healthy Communities Committee

Small Communities Committee

Investment Advisory Committee

Municipal Governance Committee

Executive Committee

Human Resources Committee

Infrastructure Committee

Audit and Finance Committee

Economic Strategy Committee

Commitment & Governance Meetings

The following summary provides the annual Board and Standing Committee meetings held per year, Director compensation and expenses reimbursement. The remuneration of Directors reflects the nature of service, complexity of tasks and amount of time dedicated to service. Director expenses are paid in accordance with the Government of Alberta rates. Each Director serves on one or more standing committees.

Commitment Attendance at Board and Standing Committee meetings is vital to the success of the Board and Standing Committees and its actions and is one measure of the commitment and contribution of an individual Director. Directors are expected to attend Board and Standing Committee meetings in which they serve. Listed below are the number of meetings held in 2025. Board

NUMBER OF MEETINGS

Association of Alberta Municipalities (ABmunis)

Alberta Municipal Services Corporation (AMSC)

AMSC Insurance Services LTD (AMSCIS)

Alberta Municipal Insurance Exchange (MUNIX)

APEX Supplementary Pension Trust (APEX)

Standing Committee

NUMBER OF MEETINGS

ABmunis - Executive

AMSC - Governance

ABmunis - Audit and Finance

ABmunis - Investment Advisory

ABmunis - Human Resources

ABmunis - Infrastructure

ABmunis - Municipal Governance

ABmunis - Safe and Healthy Communities

ABmunis - Small Communities

ABmunis - Sustainability and Environment

ABmunis - Economic Strategy

The Role of the Board

The Role of the President

The Alberta Municipalities Board is responsible for effectively governing the Association by carrying out the powers, duties and functions expressly given to it under legislation and the Association’s Bylaws and policies.

The President provides overall leadership to enhance the effectiveness of the Board. They are responsible for ensuring the effective functioning of the Board in its role of governing the Association.

Key board member responsibilities include, but are not limited to, the following:

Key responsibilities of the President include, but are not limited to, the following:

 Attending and preparing for all Board meetings.

 Guides the Board in the fulfillment of its mandate.

 Participating effectively on one or more ABmunis Standing committees.

 Ensures the Board has a strategic focus and represents the best interests of the Association.

 Represent Alberta Municipalities on external committees which share municipal interests and advocacy priorities.  Developing and evaluating the specific advocacy programs and services of Alberta Municipalities.  Monitoring and influencing government legislation, programs and policies which impact the membership.  Apprising the membership of significant national and provincial trends and/or issues that affect local governments and taking action to ensure their interests are known to decision makers.  Communicating Alberta Municipalities policies and initiatives to elected municipal and other public officials.  Encouraging their own council and regional groups to endorse important policy issues.

 Ensures that the Board plays a full and constructive part in the development and determination of the Association’s strategies and policies.  Ensures effective communication among the Board and between the Board and the CEO and serves as the contact point for Board members on all Board issues.  Chairs Board and Executive Committee meetings, ensuring meetings are conducted in an efficient, effective, and focused manner.  Encourages participation of all Board members, maintaining a cohesive group without losing diversity of opinion and objectivity.  Acts as the official spokesperson for Alberta Municipalities.

 Encouraging neighbouring municipalities to provide input and advice on Alberta Municipalities policies and initiatives. 35

2025/2026 Alberta Muncipalities Board of Directors

TERM LENGTH, BOARD & STANDING COMMITTEE PARTICIPATION1 ADDITIONAL BOARDS SERVED ON

COMMITTEES SERVED ON PRIOR TO AGM (11 months)

COMMITTEES SERVED ON POST AGM (1 months)

AMSC

Executive

MUNIX

Audit and Finance – Chair

Human Resources

APEX Chair

Investment Advisory - Chair

MEMBER

POSITION

TERM

Dylan Bressey

President

1 month

Director, Cities up to 500,000

(elected Nov 2025)

(served to Nov 2025)

12 months

(served to Nov 2025) (served to Nov 2025)

Keren Tang

Vice-President and

1 month

Director, Cities over 500,000

12 months

(appointed Nov 2025)

N/A

Infrastructure - Chair Economic Strategy - Chair

Human Resources Investment Advisory – Vice Chair Municipal Governance – Chair

Thu Parmar

Director, Cities over 500,000

1 month

N/A

Finance and Economy – Vice Chair

Andre Chabot

Vice-President and

1 month

N/A

Infrastructure and Environment – Chair

Landon Johnston Director, Cities over 1 month

N/A

Municipal Governance – Vice Chair

Erin Stevenson

N/A

Sustainability and Environment - Chair

Policing, Justice, and Emergency Management - Chair

Director, Cities over 500,000

(appointed Nov 2025) (appointed Nov 2025)

500,000

(appointed February 2026)

Vice-President and

1 month

Director, Cities up to 500,000

12 months

(appointed Nov 2025)

Janelle Sandboe

Director, Cities up to 500,000

1 month

N/A

Infrastructure and Environment – Vice Chair

Jenn Schmidt-Rempel

Director, Cities up to 500,000

1 month

AMSC

N/A

Health and Social Wellbeing - Vice Chair

David Sharun

Director, Towns East

1 month

N/A

Finance and Economy – Vice Chair

Krista Gardner

Vice President, Towns

1 month

AMSC

Small Communities - Chair

Audit and Finance – Vice Chair

Director, Towns West

12 months

Jenny Jones

Director, Towns South

1 month

N/A

Municipal Governance – Vice Chair

Tara Elwood

Director, Villages West

12 months

N/A

Safe and Healthy Communities – Vice Chair

Policing, Justice, and Emergency Management – Vice Chair

(elected Nov 2025)

(elected Nov 2025) (elected Nov 2025) (elected Nov 2025)

(elected Nov 2025)

The above table does not include representation on external committees.

(appointed Jan 2026)

Health and Social Wellbeing – Chair

MEMBER

POSITION

TERM

Bill Rock

Director, Villages East

12 months

ADDITIONAL BOARDS SERVED ON AMSC

(appointed Jan 2025)

COMMITTEES SERVED ON PRIOR TO AGM (11 months)

COMMITTEES SERVED ON POST AGM (1 months)

Infrastructure – Vice Chair

Infrastructure and Environment – Vice Chair

MUNIX

(appointed Jan 2025)

Deborah Reid-Mickler

Vice President Villages and Summer Villages Director, Villages South

1 month

(elected Nov 2025)

(appointed Jan 2025)

AMSC

Executive

12 months

APEX

Audit and Finance – Vice Chair

Audit and Finance – Chair

Infrastructure - Chair

Finance and Economy – Chair

(appointed Dec 2025)

Brian Waterhouse

Director, Summer Villages

1 month

N/A

Policing, Justice, and Emergency Management – Vice Chair

Tyler Gandam

President

11 months

N/A

Executive

N/A

Vice-President and Director, Cities up to 500,000

Peter Demong

(elected Nov 2025)

(served to Nov 2025)

Human Resources

11 months

Vice-President and Director, Cities over 500,000

11 months

John Pantazopoulos

Vice-President and Director, Cities over 500,000

2 months

N/A

Trina Jones

Vice-President and Director, Towns

11 months

AMSC

Municipal Governance – Chair

N/A

Director, Towns East

11 months

MUNIX

Andrew Knack

(served to Nov 2025)

N/A

Executive

N/A

Vice-President and Director, Cities over 500,000

Human Resources Sustainability and Environment – Vice Chair

(served to Nov 2025)

(served to Jan 2026)

(served to Nov 2025) (served to Nov 2025)

N/A

Executive

N/A

Safe and Healthy Communities

(served to Dec 2025) (served to Dec 2025)

Kourtney Penner Director, Cities over 11 months

N/A

Municipal Governance – Vice Chair

N/A

Tina Petrow

500,000

(served to Nov 2025)

Director, Cities up to 500,000

11 months

AMSC

Safe and Healthy Communities - Chair

N/A

Scott Akkermans Director, Towns

11 months

N/A

Economic Strategy – Vice Chair

N/A

Ren Giesbrecht

11 months (served to Nov 2025)

N/A

Small Communities – Vice Chair

N/A

South

Director, Summer Villages

(served to Nov 2025) (served to Nov 2025)

(served to Dec 2024)

Board Compensation and Expenses

Member1

Position

Term (months)

Dylan Bressey

President Director, Cities up to 500,000

Keren Tang

Vice-President and Director, Cities over 500,000

Thu Parmar

Vice-President and Director, Cities over 500,000 Vice President Director, Cities over to 500,000 Vice-President and Director, Cities up to 500,000 Director, Cities up to 500,000 Director, Cities up to 500,000 Director, Towns East Vice President, Towns

1 12 1 12 1

Andre Chabot Erin Stevenson Janelle Sandboe Jenn Schmidt-Rempel David Sharun Krista Gardner

Director, Towns West

Jenny Jones Tara Elwood Bill Rock

Director, Towns South Director, Villages West Director, Villages East Vice-President Villages and Summer Villages Director, Villages South Director, Summer Villages President Vice-President and Director, Cities up to 500,000 Vice-President and Director, Cities over 500,000 Vice-President and Director, Cities over 500,000 Vice-President and Director, Towns Director, Towns East Director, Cities over 500,000 Director, Cities up to 500,000 Director, Towns South Director, Summer Villages

Deborah Reid-Mickler Brian Waterhouse Tyler Gandam Peter Demong Andrew Knack Trina Jones Kourtney Penner Tina Petrow Scott Akkermans Ren Giesbrecht

1 1 12 1 1 1 1 12 1 12 12 1 12 1

Number of Boards & Committees

9 5 2 2 3 2 2 2 3 2 3 4 7 2

11 11

4 3

11 11 11 11

2 3 2 2

ABmunis Standing Committees2 AMSC/AMSCIS Board & Standing Committees3 Meeting Expenses4 Other Board Expenses5 Total Board and Committee expenses for Fiscal Year 2025

No compensation was claimed for 2025 by Landon Johnston (appointed February 2026) or by John Pantazopoulos (appointed November 2025). Amounts pertain to individuals who sit on Standing Committees but are not ABmunis Board members. 3 Amounts pertain to individuals who sit on AMSC/AMSCIS Board & Standing Committees but are not an ABmunis Board member. 4 Meeting expenses include items such as catering costs and venue rentals. 5 Incurred on behalf of the Board but not attributable to a specific Board member. 1 2

Honoraria

Expenses

Professional Development

Total

35,542

21,049

3,617

60,208

8,150

815

8,979

725

742

1,955

1,021

2,976

13,275

2,242

15,553

$ $

1,025 1,265

$ $

801 878

$ $

1,826 2,143

905

440

1,345

18,210

3,912

899

23,021

$ $ $

1,025 16,849 20,485

$ $ $

115 5,377 10,117

$ $ $

46 -

$ $ $

1,140 22,272 30,602

40,401

26,286

6,572

73,259

945

1,043

58,640

23,848

226

82,714

$ $

17,225 5,975

$ $

9,589 389

$ $

26,814 6,364

17,795

3,187

1,797

22,779

$ $ $ $ $ $ $

8,375 13,954 9,150 12,565 304,436 39,165 85,126

$ $ $ $ $ $ $

3,818 7,856 7,040 3,225 132,120 50,189 16,530

$ $ $ $ $ $ $

4,439 695 75 18,416 3,771

$ $ $ $ $ $ $ $ $ $

12,193 26,249 16,885 15,865 454,972 89,354 105,427 136,461 47,136 833,350

FINANCIAL Reports

Association of Alberta Municipalities

KPMG LLP 2200, 10175 – 101 Street Edmonton, AB T5J 0H3 Canada Telephone 780-429-7300 Fax 780-429-7379

REPORT OF THE INDEPENDENT AUDITORS ON THE SUMMARY FINANCIAL STATEMENTS To the Members of the Association of Alberta Municipalities Opinion The summary consolidated financial statements of the Association of Alberta Municipalities (the “Association”), which comprise:

•

the summary consolidated statement of financial position as at December 31, 2025

•

the summary consolidated statement of operations for the year then ended

•

and notes to the summary consolidated financial statements

are derived from the audited consolidated financial statements of the Association of Alberta Municipalities as at and for the year ended December 31, 2025 (“audited financial statements”). In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with the criteria disclosed in Note 1 in the summary financial statements. Summary Financial Statements The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the Association’s audited financial statements and the auditor’s report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements. Management’s Responsibility for the Summary Financial Statements Management is responsible for the preparation of the summary financial statements in accordance with the criteria disclosed in Note 1 in the summary financial statements.

KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. KPMG Canada provides services to KPMG LLP.

Auditor’s Responsibility Our responsibility is to express an opinion on whether the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standards 810, Engagements to Report on Summary Financial Statements.

Chartered Professional Accountants Edmonton, Canada June 2, 2026

Alberta Municipal Insurance Exchange

APEX Supplementary Pension Plan

KPMG LLP 2200, 10175 – 101 Street Edmonton, AB T5J 0H3 Canada Tel 780 429 7300 Fax 780 429 7379

REPORT OF THE INDEPENDENT AUDITORS ON THE SUMMARY FINANCIAL STATEMENTS To the Governance Boards of APEX Supplementary Pension Plan and Association of Alberta Municipalities

Opinion The summary financial statements of the APEX Supplementary Pension Plan (the “Entity”), which comprise: the summary statement of financial position as at December 31, 2025 the summary statement of changes in net assets available for benefits for the year then ended and notes to the summary financial statements are derived from the audited financial statements of the APEX Supplementary Pension Plan as at and for the year ended December 31, 2025 (“audited financial statements”). In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with the criteria disclosed in Note 1 in the summary financial statements.

Summary Financial Statements The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the Entity’s audited financial statements and the auditor’s report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.

Management’s Responsibility for the Summary Financial Statements Management is responsible for the preparation of the summary financial statements in accordance with the criteria disclosed in Note 1 in the summary financial statements.

Chartered Professional Accountants Edmonton, Canada May 29, 2026